KUALA LUMPUR: The Ministry of Finance is looking to tax online businesses next year in line with the growing Internet-based sector.
Treasury Secretary-General Mohd Irwan Serigar Abdullah said the ministry had requested the Inland Revenue Board (IRB) to conduct a thorough evaluation of the matter.
“We need to tax these people who are also earning an income which is taxable.
“Otherwise, it will be revenue lost for the government with more and more businesses going into the sharing and digital economies,” he told reporters after delivering his key note address at the Financial Reform for Economic Development in Asia Public Sector Forum 2016 here today.
He said the IRB, which had formed an online business and commerce division, was also working with the Companies Commission of Malaysia (SSM) as part of the evaluation.
“We are also interested in getting those undertaking online businesses to register with the SSM, to enable us to track how much they earn,” he added.
Irwan also said a study by the Land Public Transport Commission on Uber/Grab part-time taxi drivers showed their earnings could reach up to RM7,000 per month, which is taxable income.
The current taxable income is around RM3,000 to RM4,000 per month. Bernama